Wholesale Qualifying Facility Conversion

Reviewing Your Interconnection Agreement When Your Power Purchase Agreement Expires

Qualifying Facilities (QFs) are power producers or co-generators who can sell their electricity to public utilities. QFs generate about 25 percent of PG&E's energy supply. Energy deregulation has allowed these generators to choose the markets in which they sell the electricity they generate.

If you are a QF generator and your current Power Purchase Agreement (PPA) is expiring, or you intend to sell power into additional or different markets, you will need to execute a new PPA as well as replace your current interconnection agreement with PG&E. The type of PPA you choose and whether you connect at the Transmission level (60 kV and above) or Distribution level (less than 60 kV) will determine the type of interconnection agreement you sign with PG&E. This page explains the different types of interconnection agreements and the resources available to help you renew your agreement with PG&E.

PG&E's Generation Interconnection Services (GIS) offers outreach and education about interconnection and helps customers manage the interconnection process. There are no costs associated with PG&E's services related to this process. The renewal process can be a lengthy one, so we recommend you begin taking the required steps at least six months before your current PPA expires.

The Intercnnection Agreement Rnewal Process

To find out how to renew your agreement and see a list of the items you need to provide to PG&E, read the Qualifying Facilities Getting Started Guide (PDF, 64 KB).

Your Interconnection Agreemnet

There are three types of agreements that detail the terms of a facility's interconnection with PG&E—a California Independent Systems Operator (CAISO) Tariff agreement, a Rule 21 agreement and a Wholesale Distribution Tariff (WDT) agreement:

  • CAISO Tariff agreement for Transmission customers (facilities of 60 kV or /greater): If your QF is interconnected to the CAISO-controlled grid, you will need to execute either a Large Generator Interconnection Agreement (LGIA) (for QFs larger than 20 MW) or Small Generator Interconnection Agreement (SGIA) (for QFs smaller than 20 MW). This will be a three-party agreement between you, CAISO and PG&E. Under this agreement, you may select any PPA, depending on whether you intend to sell power under California Public Utilities Commission (CPUC) or Federal Energy Regulatory Commission (FERC) jurisdiction. If you sign a CAISO Tariff agreement, CAISO will oversee your agreement.
  • Rule 21 agreement or WDT agreement for Distribution customers (facilities of less than 60 kV): If your QF is interconnected to the PG&E-controlled grid, you will need to execute a Rule 21 or Wholesale Distribution Tariff agreement with PG&E. Similarly, you will need to execute either an LGIA (PDF, 197 KB) (for QFs larger than 20 MW) or an SGIA (PDF, 86 KB) (for QFs smaller than 20 MW). This will be a two-party agreement between you and PG&E. If you sign a Rule 21 agreement, the CPUC will oversee your agreement. If you sign a WDT agreement, the FERC will oversee your agreement.

The type of agreement you may enter into is determined by the type of PPA you sign:

  • If you sign a PPA other than a Public Utility Regulatory Policy Act (PURPA) PPA, you must execute either a CAISO Tariff or a Wholesale Distribution Tariff agreement. An example of a PG&E PURPA PPA is the AB 1613 program. Otherwise, you may use a WDT agreement in conjunction with any PPA.
  • If you sign a PURPA PPA, you are eligible to sign a Rule 21 agreement.

PG&E is Here to Help

Questions about the renewal process? PG&E is here to help. For assistance, email wholesalegen@pge.com.
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